Kroger Co (NYSE:KR) stock was up on Thursday following talk of a possible deal with Alibaba Group Holding Ltd (NYSE:BABA).
Reports of a possible deal between the two company claim that they were looking to team up. The exact nature of the deal is still unknown, but several unnamed sources have confirmed that talks took place in China last year.
What we do know about the meeting between Kroger Co and Alibaba Group Holding Ltd is that two are likely teaming up to help each other with online and offline sales. KR is the largest grocery chain in the U.S., which means it could help BABA spread its influence in the country. At the same time, Alibaba’s technology could help Kroger speed up checkout at its stores.
It’s likely that Kroger Co and Alibaba Group Holding Ltd are planning to team up to take on another rival: Amazon.com, Inc. (NASDAQ:AMZN). The online retailer has been making pushes into the grocery market with its acquisition of Whole Foods, reports USA Today.
Another effort from Amazon to make its mark in the grocery industry is Amazon Go. This is a new store in Seattle that opened its doors to the public this week. The store doesn’t have any checkout lines, and instead uses cameras and other technology to track what customers take with them from the store.
KR stock was up 2% and BABA stock was up 1% as of noon Thursday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
